7.4 Projected Balance Sheet

The following table shows the projected balance sheet for three years.

Pro Forma Balance Sheet

FY 2003

FY 2004

FY 2005

Assets

Current Assets

Cash

$88,771

$79,437

$92,781

Accounts Receivable

$45,000

$49,744

$60,240

Inventory

$3,410

$3,846

$4,391

Other Current Assets

$5,000

$5,000

$5,000

Total Current Assets

$142,181

$138,027

$162,412

Long-term Assets

Long-term Assets

$36,736

$36,736

$36,736

Accumulated Depreciation

$14,848

$24,448

$34,048

Total Long-term Assets

$21,888

$12,288

$2,688

Total Assets

$164,069

$150,315

$165,100

Liabilities and Capital

FY 2003

FY 2004

FY 2005

Current Liabilities

Accounts Payable

$9,839

$9,503

$11,100

Current Borrowing

$1,800

$600

$0

Other Current Liabilities

$0

$0

$0

Subtotal Current Liabilities

$11,639

$10,103

$11,100

Long-term Liabilities

$42,000

$23,700

$10,000

Total Liabilities

$53,639

$33,803

$21,100

Paid-in Capital

$0

$0

$0

Retained Earnings

$105,488

$110,430

$116,512

Earnings

$4,942

$6,082

$27,488

Total Capital

$110,430

$116,512

$144,000

Total Liabilities and Capital

$164,069

$150,315

$165,100

Net Worth

$110,430

$116,512

$144,000

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5149, Groceries and related products, are shown for comparison.

Ratio Analysis

FY 2003

FY 2004

FY 2005

Industry Profile

Sales Growth

56.50%

10.54%

21.10%

4.60%

Percent of Total Assets

Accounts Receivable

27.43%

33.09%

36.49%

33.30%

Inventory

2.08%

2.56%

2.66%

26.00%

Other Current Assets

3.05%

3.33%

3.03%

20.90%

Total Current Assets

86.66%

91.83%

98.37%

80.20%

Long-term Assets

13.34%

8.17%

1.63%

19.80%

Total Assets

100.00%

100.00%

100.00%

100.00%

Current Liabilities

7.09%

6.72%

6.72%

45.20%

Long-term Liabilities

25.60%

15.77%

6.06%

10.00%

Total Liabilities

32.69%

22.49%

12.78%

55.20%

Net Worth

67.31%

77.51%

87.22%

44.80%

Percent of Sales

Sales

100.00%

100.00%

100.00%

100.00%

Gross Margin

90.00%

89.80%

90.38%

44.10%

Selling, General & Administrative Expenses

88.44%

88.08%

83.95%

26.70%

Advertising Expenses

1.92%

2.31%

2.39%

0.70%

Profit Before Interest and Taxes

3.78%

3.50%

9.78%

0.80%

Main Ratios

Current

12.22

13.66

14.63

1.69

Quick

11.92

13.28

14.24

1.01

Total Debt to Total Assets

32.69%

22.49%

12.78%

55.20%

Pre-tax Return on Net Worth

6.39%

7.46%

27.27%

3.60%

Pre-tax Return on Assets

4.30%

5.78%

23.78%

8.00%

Additional Ratios

FY 2003

FY 2004

FY 2005

Net Profit Margin

1.58%

1.76%

6.56%

n.a

Return on Equity

4.48%

5.22%

19.09%

n.a

Activity Ratios

Accounts Receivable Turnover

5.22

5.22

5.22

n.a

Collection Days

58

67

64

n.a

Inventory Turnover

9.76

9.73

9.79

n.a

Accounts Payable Turnover

9.62

12.17

12.17

n.a

Payment Days

30

31

28

n.a

Total Asset Turnover

1.91

2.30

2.54

n.a

Debt Ratios

Debt to Net Worth

0.49

0.29

0.15

n.a

Current Liab. to Liab.

0.22

0.30

0.53

n.a

Liquidity Ratios

Net Working Capital

$130,542

$127,924

$151,312

n.a

Interest Coverage

2.48

3.55

23.90

n.a

Additional Ratios

Assets to Sales

0.52

0.43

0.39

n.a

Current Debt/Total Assets

7%

7%

7%

n.a

Acid Test

8.06

8.36

8.81

n.a

Sales/Net Worth

2.83

2.97

2.91

n.a

Dividend Payout

0.00

0.00

0.00

n.a

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